TBOR opens administrative review into Sevier County Utility District after DOI investigation and indicted manager

The Tennessee Board of Utility Regulation on Thursday opened an administrative review into the Sevier County Utility District after a comptroller investigation and subsequent indictment of a former manager.

The comptroller division of investigations uncovered multiple irregularities in the utility’s accounting and operations, and the district’s former manager has been criminally indicted. Board members and staff told the TBOR that the earlier misconduct produced large losses and that board-level guardrails appeared inadequate.

Board discussion focused on whether the current governing board should be removed or disciplined. Some members argued that because the present commissioners were not on the board during earlier misconduct, a full contested-case hearing to remove members might be premature. Others said statewide public-interest considerations required a full review of how the board exercised fiduciary oversight.

After debate the TBOR voted to open an administrative review rather than proceed immediately to a contested-case hearing. The review will gather records and interviews to answer key questions including “what did board members know, and when?” and to identify governance changes needed to prevent recurrence. The board directed staff to complete the fact-finding and return to the TBOR with findings and recommendations by the next scheduled meeting.